Financial restructuring

Expect more Hong Kong privatisations in 2020

Amid the implementation of new trading rules and access to cheaper financing, increasing numbers of public companies in Hong Kong are choosing to delist or privatise even as bourse rules allow unprofitable companies to go public.

In 2019, almost thirty companies were delisted from the Hong Kong exchange, three time more than the previous year after the bourse implemented new rules to expel companies permanently if shares were suspended between 12 to 18 months without any resolution.  The company exodus comes as the Hong Kong exchange initiated new guidelines to allow fast growing unprofitable companies with weighted voting rights.

¬ Haymarket Media Limited. All rights reserved.

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